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Friday Five – 5 June – 5 Questions in 5 Minutes

Friday Five – 5 June – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT!  These questions relate to examinable tax year 2019/20, examinable by the CII until 31 August 2020.  They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

  1. What does the ‘general prohibition’ rule within s.19 of the FSMA refer to?
    1. The fact that intermediaries are generally restricted to certain activities
    2. It is an offence for someone to carry out a regulated activity unless the person is authorised or exempt
    3. The FCA will seek to stop unauthorised individuals working within the financial services sector
    4. The powers granted to the FCA by the FMSA in relation to authorising
  1. Why might an adviser consider multi-manager funds instead of creating a complete set of model portfolios?
    1. To avoid the need for future reviews
    2. To reduce the volume of required fund research
    3. If the client has adopted a ‘mental accounting’ approach
    4. Where the client doesn’t fit one of the standardised risk profiles
  1. Which of the following can be an effective strategy for reducing a company director’s liability to national insurance contributions?
    1. Sacrificing salary to increase the amount the company pays to company pension schemes
    2. Giving up their company car
    3. Arranging for their salary to be paid in ad-hoc lump sums rather than on a monthly or weekly basis
    4. Increasing their contributions into a personal pension
  1. Tom is paying secondary Class 1 National Insurance contributions (NICs) as well as Class 2 and Class 4 NICs. This would indicate that Tom is:
    1. currently employed but has been self-employed in the last tax year.
    2. making good any NIC shortfall.
    3. over State pension age.
    4. self-employed and has employed staff
  1. If a company has an agreement to purchase its own shares on the death of a shareholder, subject to HMRC agreement the sale will normally count as:
    1. a trading receipt for corporation tax purposes.
    2. a disposal for capital gains tax purposes.
    3. a chargeable transfer for inheritance tax purposes.
    4. a distribution for income tax purposes.

 

Answers

  1. B – See R01 Study Text, Chp 6
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. B – See R02 Study Text, Chp 7
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. A – See R03 Study Text, Chp 11
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. D – See R04 Study Text, Chp 7
    Grab our taster mock exam paper for CII R04 Click here to download.
  1. B – See R05 Study Text, Chp 10.2
    Grab our taster mock exam paper for CII R05. Click here to download.

 

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

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